Whichever way companies choose to track employees’ time, a recent case makes one thing clear: They must keep accurate records — or take a big hit in court.

A woman sued her employer, claiming she worked overtime that was never paid.

Could she prove this? Well, she didn’t have any proof she ever worked more than 40 hours a week, and she couldn’t even name specific times when she allegedly worked overtime.

Her case was thrown out, right? Wrong.

Turns out, the employee did have evidence that the company didn’t keep accurate records of the hours employees worked. The woman managed a store and had the only set of keys — therefore she had to be there to open and close the store.

But on some days, company records showed her coming in after the store was open and leaving before it closed. She claimed she was there but that her boss submitted inaccurate attendance information.

Normally, it’s up to an employee to prove he or she worked overtime and didn’t get paid. But in this case, the court ruled, doubt was cast on the accuracy of the company’s own records.

Therefore, the company had the burden to prove no overtime was worked — which it couldn’t do. The woman’s complaint will now lead to a costly jury trial or an expensive settlement.

Time must be accurate, however it’s tracked

Employers have a lot of options when it comes to tracking the hours employees work.

Whatever the method used, managers must be trained on the importance of accurate tracking and documentation.

Failing to keep solid records violates the Fair Labor Standards Act — and leaves the company helpless if an employee makes a claim about unpaid time.

Cite: Brown v. Family Dollar Stores of Indiana, LP

Tags: overtime, recordingkeeping, Time and attendance